Accept N740bn Abuja-Kano road reviewed contract sum, FG to Julius Berger

The Federal Government has given Julius Berger Plc within 7 days to accept or reject the approved reviewed contract sum for the completion of rehabilitation of section II of the Abuja-Kaduna-Zaria-Kano road or face contract determination.

Works Minister, Engr David Umahi who gave the ultimatum during the courtesy visit of the new Managing Director of Julius Berger Plc, Dr. Pier Lubasch, accompanied by outgoing Managing Director, Dr. Lars Richter at his office, Mabushi Abuja on Tuesday.

He urged the contractor to show corporate patriotism by accepting the FG’s approved reviewed total contract sum of 740 billion naira for the completion of the rehabilitation of the 82 km section II of the Abuja-Kaduna -Zaria-Kano road.
Umahi lamented that the delay in mobilizing to the site despite the approved funds by the Federal Executive Council is causing untold hardship to road users and that the Federal Government is at the receiving end of the situation.

According to him, “So if Berger is not doing it, then let’s have other people to do the job and within the time that we can control price. We’ve had more than 20 letters from Berger on this.

“It is a ping pong game from Julius Berger. The prices rose from ₦710 billion to ₦740 billion because of these delays. And if we continue the delays, it is the problem of the Ministry of Works.
“This offer is not subject to any condition. It’s not subject to any condition that is being dished out here. It’s taken as given after more than 14 months. I’m sorry, I have to sound this way because there must be an end to negotiation.

“If anybody says there shouldn’t be an end to negotiation, then that person is not business person. If you have negotiated for 14 months without any result, you should terminate the negotiation”, the Minister added.

While welcoming the new Managing Director of Julius Berger Plc, Umahi reiterated the need for construction companies working with the Federal Ministry of Works to prepare to make sacrifices in terms of value for money and realistic contract pricing.
He said this will encourage the much needed road infrastructure revolution for the nation’s economic transformation which is a cardinal agenda of the Renewed Hope administration of the President of the Federal Republic of Nigeria, His Excellency, President Bola Ahmed Tinubu.

“Already a number of Berger projects have been terminated because the site has been abandoned. And we needed to do something about it because Nigerians are suffering. Nigerians are crying, and they are insulting the President. We can not allow that to be happening”, he added.

As contained in a statement released by the Ministry, the new Managing Director promised to revert as soon as possible on the issues sought to be addressed and hoped that consensus would be reached for the project to take off without further delay.

Also, the outgoing Managing Director, however, noted that the essence of the courtesy call to the Honourable Minister of Works was to introduce the new Managing Director of the company.